In this video, Huntington Beach Realtor, Jeb Smith discusses the term Pre Foreclosure and what is means as a Buyer when looking at pre foreclosure homes.
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Pre Foreclosure Definition
A pre-foreclosure home is when the owner of the home is behind or in default on their mortgage payments and the bank has issued a notice of detault and set a date for the home to go to auction.
What is a pre foreclosure on Zillow?
A property is listed on Zillow as a pre foreclosure when a property has late mortgage payments and the lender/bank has issued a Notice of Default.
What is a notice of default?
A notice of default is a notification given to a borrower stating that he or she has not made their payments by the predetermined deadline, or is otherwise in default on the mortgage contract.
Can I Buy a Pre Foreclosure Home prior to Foreclosure?
In my experience the only way to purchase a pre foreclosure home prior to foreclosure is to buy the property directly from the homeowner since the bank doesn’t own the home until it actually foreclosures. That means you would be responsible for the loan balance, any liens on the property and any unpaid property taxes.
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